TNCs Flashcards
1
Q
Other names for TNCs
A
MNCs, enterprises, corporations
2
Q
Examples of TNCs
A
Coca cola, nestle, unilever, kellogs
3
Q
What are different sections within a TNC called
A
Subsidiaries e.g. Nestle produces Loreal
4
Q
Why are TNCs driven by profits
A
Shareholders account for the company
5
Q
How many exports worldwide are from TNCs within the world
A
About a third
6
Q
How do TNCs have a strong political influence?
A
Pay, rights, rules (not just ldcs)- no loyalty to countries of production and can change easily for gov benefits
7
Q
How can TNCs expand
A
Acquisition (buy) or merger (join)
8
Q
Why do TNCs create subsidiaries
A
Expansion and diversity when expanding, internal or external (buy out companies- already set up)
9
Q
What is a merger
A
Companies of similar size, lack financial strength to buy out
